RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

Writ Petitions related
to notification on
usage of old and new
liquor bottles for
packaging).
Recovery Suits
Not quantifiable
Rs. 2,71,498/-
Rs. 27,63,894/-
Rs. 11,11,279/-
Rs.2,33,780.50
(Rs. 2,14,477.50 plus
Rs. 19,303/- towards
interest)
November 16, 2009 for
arguments on the application
for amendment of plaint by the
parties.
c. Next hearing is fixed for
arguments by the parties. Date
will be fixed later.
a. Final Arguments have been
completed and the Case has to
come for final hearing. Date to
be fixed later.
b. Adjourned till disposal of Case
No. C.W.P 11641/1997 as the
point in issue is similar.
Matter is pending for evidence of
Defendants. Next date of hearing
September 7, 2009.
For further details regarding these litigations, please refer to the section titled “Outstanding
Litigations and Defaults” beginning on page no. 198 of this Red Herring Prospectus.
16. As on June 30, 2009 the Company has Unsecured loans amounting to Rs. 57.17
lakhs comprising Rs. 17.38 lakhs by way of Inter-Corporate Deposits (ICDs) and
Rs. 39.79 lakhs from ABN AMRO Bank Limited The Unsecured loans by way of ICDs
bear no interest and are repayable on Demand. The Unsecured loans from ABN
AMRO Bank carry an interest of 15.75% and are repayable on Demand. In the
event of any demand, the cash outgo may affect the Company’s operations and
profitability.
Management Perception
The Company has adequate reserves for re- payment in the event of any withdrawal in the
unsecured loans currently enjoyed by the Company, and therefore is of the opinion that it
will not affect the Company’s operations or profitability.
17. The Company has planned capital expenditures, which may not yield the benefits
intended thus having an adverse impact on the Company’s’ business and
profitability
The Company may not be able to execute its expansion plans as contemplated. The capital
expenditure plans are subject to a number of variables, including possible cost overruns;
development delays or defects in construction; receipt of governmental approvals; and
changes in management’s views of the desirability of current plans. The Company may not
be able to execute its expansion plans as contemplated. Due to time and/or cost overruns
the anticipated benefit of such plans to its revenues and profitability may decline. To the
extent that completed and/or planned capital expenditures do not produce anticipated or
desired revenue or cost-reduction outcomes, the profitability and financial condition will be
adversely affected.
18. Some of the Group Companies promoted by the Promoters have incurred losses
during any of the last three years as detailed below:
The following group companies, promoted by the promoter, have made losses during the last
three financial years:
Sr
No
Name of the Group Company
Profit/(Loss)
for the year
ended
31.03.07
Profit/(Loss)
for the year
ended
31.03.08
Profit/(Loss)
for the year
ended
31.03.09
1 Northern India Alcohol Sales (0.55) 0.34 (0.58)
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